A share of stock in the Bree Medical Supply Company is quoted at 351/4. Suppose you hold 20 shares of that stock, which you bought at 311/2. If you sold your stock at 351/4, which of the following would be true? A. You suffered a loss of $630.00. B. You made a profit of $75.00. C. You made a profit of $705.00. D. You suffered a loss of $75.00.

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Business

Tatiana Walter

26 October, 12:10

A share of stock in the Bree Medical Supply Company is quoted at 351/4. Suppose you hold 20 shares of that stock, which you bought at 311/2. If you sold your stock at 351/4, which of the following would be true? A. You suffered a loss of $630.00. B. You made a profit of $75.00. C. You made a profit of $705.00. D. You suffered a loss of $75.00.

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Tripp · Answer 1

B. You made a profit of $75.00

Explanation:

shares x (sale - buy)

20 shares x (35 & 1/4 - 31 & 1/2)

20 x (35.25-31.5)

20 x 3.75 = 75

The difference between purchase and sale price is positive, so eahc share yields a gain of $3.75

We multiply this by the amount of shares to determiante the gain